Legislation and Rulemaking

2024 Insurance Legislation Summary

2023 Insurance Legislation Summary

(All legislation takes effect July 1, 2023 unless otherwise noted.)

Department of Insurance Legislation:

The Department of Insurance brought forth no legislation during the 2023 Legislative Session.

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Amending Idaho Code § 72-451 – House Bill 18. This legislation removes a sunset clause that makes psychological injuries suffered by first responders compensable.
  Reported signed by Governor Little on February 23, 2023.
• Amending Chapter 57, Title 54, Idaho Code – House Bill 61. This legislation adds a new section to provide for Interstate Mental and Behavioral Telehealth.
  Reported signed by Governor Little on March 27, 2023.
• Amending the dedicated Public Schools Health Insurance Participation Fund – House Bill 203. This legislation amends the dedicated fund for the purpose of funding the one-time amount required for public schools to buy into the state’s medical and dental group insurance plan to be what is required as insurance rates change. House Bill 203 extends the time limit allowed before sunset to be 2025.
  Signed by Governor Little on March 30, 2023.
• House Bill 215 – This legislation adds language to clarify and outline the enforcement authority of Title 41-349 by the Department of Insurance regarding Pharmacy Benefit Managers.
  Reported signed by Governor Little on March 31, 2023.
• House Bill 284 – This legislation repeals the fees for release of liability for vehicle titles. Insurers will need to report via the online insurance verification system at least weekly. Initial notices will be sent to owners of motor vehicles who have not established or maintained financial responsibility (liability insurance) for two consecutive months.  Vehicle owners will have 60 days to comply. Following this, a final notice will give the recipient 10 days to correct the
  requirement of financial responsibility or notify the department of an exemption. This legislation asks insurance companies to voluntarily submit data indicating that a vehicle’s insurance has been lawfully suspended because the
  vehicle has been placed in storage.
  Reported signed by Governor Little on April 4, 2023.
• House Bill 291 – This legislation establishes minimum and uniform standards and criteria for the audit of pharmacy records by or on behalf of pharmacy benefit managers and other authorized entities.
  Reported signed by Governor Little on March 31, 2023.
• House Concurrent Resolution 8 – This House Concurrent Resolution is to adopt all fee and non-fee rules from the Department of Insurance during the 2023 Legislative Session.
  Delivered to Secretary of State at 10:40 am on March 30, 2023.
• Senate Bill 1020 – The Idaho Department of Administration proposes legislation related to Red Tape Reduction within Title 22.  This legislation repeals the requirement for the Office of Group Insurance to promulgate rules for determining the eligibility of participants in the state’s health insurance plan. This eligibility is determined in contracts with health
  insurance providers.
  
  This legislation also adds a member to the Group Insurance Advisory Committee from a school district participating in the state’s group health insurance plan. Representation from the school district will provide their perspective on GIAC decisions impacting health insurance coverage and administration.
  Reported signed by Governor Little on March 23, 2023.

   

2022 Insurance Legislation Summary

(All legislation takes effect July 1, 2022 unless otherwise noted.)

Department of Insurance Legislation:

The Department of Insurance brought forth no legislation during the 2022 Legislative Session.

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• House Bill 443 – This legislation creates a dedicated fund for the purpose of funding the one-time amount required for public schools to buy in to the state’s medical and dental group insurance plan. It establishes limits for the amount that can be allocated per school district, and how to handle situations in which the demand exceeds available funds.  To offset an ongoing amount of funding for school health insurance.
  Reported signed by the Governor February 8, 2022. Effective July 1, 2022.

• Senate Bill 1281 – This legislation eliminates an inactive provision of law. It repeals an outdated section of Idaho Code, specifically Title 54, Chapter 1, Abstracters of Title. The statute chapter has not been updated since 1963 and is longer in use.
  Signed by the Governor on March 17, 2022. Effective July 1, 2022.

2021 Insurance Legislation Summary

(All legislation takes effect July 1, 2021 unless otherwise noted.)

Department of Insurance Legislation:

• Repealing Chapter 35, Title 41, and Idaho Code § 41-1027; amending Idaho Code §§ 41-1108, 41-1233, 41-1612, 41-2506, 41-3423, 67-5773 – House Bill 78. This legislation repeals several outdated or otherwise unnecessary provisions of Title 41.
  Presenter: Director Cameron
  Reported Signed by Governor Little on March 12, 2021
• Amending Chapter 19, Title 41, Idaho Code, by the addition of a new sections; and amending Idaho Code §§ 41-1941 and 41-1942 – House Bill 79. Repeals, adds to, and amends existing law to enact the Annuity Consumer Protections Act, putting into statute annuity suitability and disclosure standards.
  Presenter: Director Cameron
  Reported Signed by Governor Little on March 12, 2021
• Amending Idaho Code § 41-515 and adding Idaho Code § 41-515A – House Bill 80. This legislation provides more flexibility and options for insurance companies looking to purchase reinsurance on insurance policies for Idaho policyholders and this reinsurance coverage frequently comes from the international market. These amendments allow insurance companies to continue to receive credit for reinsurance on its financial statements from a larger potential market of reinsurance companies. These model law amendments are also required for accreditation of the Idaho Department of Insurance by the NAIC. Accreditation is important to maintain for consistent, streamlined, and fair regulation of insurance companies.
  Presenter: Director Cameron
  Reported Signed by Governor Little on March 17, 2021
• Amending Idaho Code §§ 59-1302 and 72-451 – Senate Bill 1009. Clarifies that the state fire marshal and the state fire marshal’s deputies are considered firefighters for purposes of the Public Employee Retirement System (PERSI) and certain worker’s compensation benefits for first responders. By including the SFM and his deputies in the definition of firefighter we provide uniformity and a potential career path for firefighters. 
  Presenter: Director Cameron
  Reported Signed by Governor Little on March 18, 2021

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Amending Idaho Code § 41-2835 – House Bill 81. This legislation increased the maximum number of directors allowed to sit on certain insurance companies’ boards to 25.
  Reported signed by Governor Little on April 8, 2021
• Amending Idaho Code § 41-1849 and 41-3444 – Senate Bill 1124. This legislation revised provisions regarding contracts with providers of dental services.
  Signed by Governor Little on April 13, 2021
• Amending Idaho Code § 41-4404 – Senate Bill 1143. This legislation allows individual Medicare Supplement plan policyholders to change to a different insurer once a year without going through an underwriting process. It also allows for community rating rather than issue age rating.
  Reported signed by Governor Little on April 19, 2021.

2020 Insurance Legislation Summary

(All legislation takes effect July 1, 2020 unless otherwise noted.)

Department of Insurance Legislation:

• Regarding the Idaho Hospital Liability Trust Act – Title 41, Idaho Code, Chapter 37: repealing the Act – House Bill 362. Consistent with the Red Tape Reduction Act, this legislation repealed the Hospital Liability Trust Act. No hospital liability trusts were currently registered in the state of Idaho nor had any been registered for several years.
  Presenter: Director Cameron

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Amending Idaho Code § 41-349 – House Bill 386. This legislation adds to existing law to provide certain registration and reporting requirements for Pharmacy Benefit Managers, to prohibit certain actions, to provide certain requirements for maximum allowable cost pricing, and to prohibit the retroactive denial or reduction of a claim in certain instances.
  This bill was signed into law by Governor Brad Little on March 12, 2020.
• Amending Idaho Code §§ 41-1941, 41-1942, and 41-1943 – House Bill 526. This legislation only applied to the section regarding indexed annuities. It asks the agent to maintain disclosure records for a time certain and asks insurance companies to surrender charges over a 10-year period. The director would be charged to create the disclosure form.
  This bill was signed into law by Governor Brad Little on March 24, 2020.

2019 Insurance Legislation Summary

(All legislation takes effect July 1, 2019 unless otherwise noted.)

Department of Insurance Legislation:

• Regarding Fees and Taxes – Title 41, Idaho Code, Chapter 4: amending section 41-402, Premium Tax – House Bill 027. Many insurer premium tax returns are corrected or audited related to cents. This proposal to amend I.C. § 41-402 to allow the payment and reporting of premium tax returns to be rounded to the nearest whole dollar would conform with Idaho Tax Commission and other reporting methods.
• Regarding Acquisitions of Control and Insurance Holding Company Systems – Title 41, Idaho Code, amending Chapter 38 – House Bill 071. This legislation updates Idaho’s insurance holding company law to the latest version of the NAIC model law 414 to authorize the Director of the Idaho Department of Insurance to serve in the capacity as a group-wide supervisor for an internationally active insurance group. Our law (I.C. § 41-3815) already allows for the Director to participate in a supervisory college – just not to lead it as a group-wide supervisor. This is an NAIC accreditation standard for January 2020. While it would conform Idaho’s law to the latest NAIC model, there currently are no Idaho domestic insurers within the scope of an internationally active insurance group.

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Amending Idaho Code §§ 41-1849 and 41-3444 – Senate Bill 1069. To revise provisions regarding contracts with providers of dental services. This legislation clarifies current language that a dental plan contracting with a dentist cannot set the rate for a procedure that is not covered by that contract. This bill further defines that covered services are services that a dental plan contracting with a dentist is liable for paying either in part or in whole. The bill provides for discussion and notice between a dentist and patient when the patient’s services become non-covered services due to the patient exceeding their capped benefit by 100 percent. The bill will apply to any dental plan or contract which is issued after December 31, 2019.

2018 Insurance Legislation Summary

(All legislation takes effect July 1, 2018 unless otherwise noted.)

Department of Insurance Legislation:

• The Department of Insurance brought forth no legislation during the 2018 Legislative Session.

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Amending Idaho Code §§ 41-6003 and 41-6006 – House Bill 393. This legislation addressed three basic changes to the Idaho Immunization Assessment Board: (1) adding one additional member from the business community who represents a self-funded insurance plan to the existing Idaho Immunization Assessment Board; (2) resetting the sunset date for the Board from July 1, 2019, to July 1, 2024; and (3) removing the imposition of interest requirement for late or nonpayment of assessments.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 1, 2018.
• Amending Idaho Code § 41-3812 – House Bill 454 – This legislation revises provisions regarding dividends and other distributions, allowing domestic insurers to declare a non-extraordinary dividend if the dividend does not exceed the greater of 10% of surplus or the operating income for the preceding year, while providing appropriate levels of Department of Insurance oversight.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 14, 2018.
• Amending Idaho Code §§ 41-1315A and 41-2708 House Bill 519. To allow title insurance companies to reimburse bona fide employees for both title insurance premiums and escrow fees otherwise payable by the employee to the insurance agent or company in connection with the employee’s non-business residential real estate transactions.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 20, 2018.
• Repealing Title 49,Chapter 28, Idaho Code, adding Title 41, Chapter 62, Idaho Code, and amending Idaho Code § 41-114A – House Bill 521. This legislation updates the Idaho Motor Vehicle Service Contract Act, which was enacted into law in 1993. This legislation moves the authority to enforce the Act from the Attorney General to the Department of Insurance. In addition, this legislation clarifies the definition of some service contract types for inclusion. Also, this legislation maintains similar penalties for violations and does not preclude a cause of action under the Idaho Consumer Protection Act.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 19, 2018.
• Amending Idaho Code § 41-1850 – House Bill 522. This legislation revised provisions regarding the content of certificates of insurance and made technical corrections.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 20, 2018.
• Amending sections in Title 41, Chapter 43 Idaho Code – House Bill 548. This legislation provides that: benefits provided by a long-term care rider shall be considered the same type of benefits as the base life insurance policy or annuity contract to which it relates; the Idaho Life and Health Guaranty Association may terminate certain health benefit plans upon entry of an order of liquidation with approval of the director; certain Class B assessments for long-term care insurance shall be allocated by a methodology on a 50-50 split for health member insurers and life and annuity member insurers.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 20, 2018.
• Amending sections in Title 41, Chapter 41, Idaho Code – Senate Bill 1219. This legislation allows the Director of the Department of Insurance to waive the requirement for a joint public agency self-funded health benefits plan to purchase aggregate stop loss insurance when certain conditions are met.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 13, 2018.
• Amending Idaho Code § 41-306, and adding §§ 41-306A and 41-516 – Senate Bill 1288. This legislation adds to and amends existing law to provide for interstate health insurance sales and to authorize out-of-state insurers to sell health insurance in Idaho under certain conditions and to authorize the department of insurance to enter into compacts with other states.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 20, 2018.
• Adding a new section Idaho Code § 41-1852 – Senate Bill 1302. This legislation adds to existing law a section to prohibit discrimination against and based on a person’s status as a living organ donor.
  This bill was signed into law by Governor C. L. “Butch” Otter on March 20, 2018.

2017 Insurance Legislation Summary

(All legislation takes effect July 1, 2017 unless otherwise noted.)

Department of Insurance Legislation:

• Regarding Risk Management and Own Risk Solvency Assessment Act (ORSA) – Title 41, Idaho Code, adding Chapter 63 – House Bill 100. This legislation is based on the National Association of Insurance Commissioners (NAIC) Risk Management and Own Risk Solvency Assessment Model Act (#505), which followed the 2008 recession. The goal is to have insurance companies or insurance holding company groups identify enterprise-wide risks that are relevant and material and report those risks once a year to the Department of Insurance on a confidential basis. This ORSA model act will provide guidance and instructions to domiciled insurers for filing a confidential ORSA summary report with the director. It is helpful to both insurance companies and their regulator to have companies perform a regular assessment of their own risks and file that summary report with the department. This model law is required for accreditation of the Idaho Department of Insurance by the NAIC to maintain consistent, streamlined, and fair regulation of insurers.
  Presenter: Director Cameron
• Regarding Credit for Reinsurance – Title 41, Idaho Code, Chapter 5: amending section 41-514 and adding section 41-515 – House Bill 101. This legislation is based on the National Association of Insurance Commissioners (NAIC) Credit for Reinsurance Model Law (#785). Idaho already has some provisions from this model law in existing code setting forth conditions when ceding insurers may take credit for reinsurance. The revisions will reduce collateral requirements for non-U.S. licensed reinsurers that are licensed and domiciled in qualified jurisdictions. This in turn will make reinsurance more affordable for U.S. insurers while still maintaining necessary protections. This model law is required for accreditation of the Idaho Department of Insurance by the NAIC.
  Presenter: Director Cameron
• Regarding NAIC Corporate Governance Model Act – Title 41, Idaho Code, adding Chapter 64 – House Bill 102. This legislation is based on the National Association of Insurance Commissioners (NAIC) Corporate Governance Annual Disclosure Model Act (#305). In part following the 2008 recession, the NAIC worked towards the goal of having insurance companies or insurance holding company groups identify their corporate governance practices. This corporate governance model act will provide guidance and instructions to domiciled insurers for filing a confidential corporate governance annual disclosure with the Department of Insurance. This legislation will outline requirements for completing a confidential corporate governance annual disclosure and permits the department to maintain an understanding of domiciled insurer’s corporate governance framework. This model law is expected to be required for accreditation of the Idaho Department of Insurance by the NAIC.
  Presenter: Director Cameron

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Amending Idaho Code § 41-1016 – House Bill 136.This legislation seeks to assure that inmates in a county jail are not put in a position to be pressured by other inmates to do business with certain bail agents to the exclusion of other bail agents.
• Amending Idaho Code § 41- 1830 – House Bill 244. This legislation adds to existing law, Title 41, Chapter 18, requiring that an individual life insurance policy include the option for the policy holder to designate an individual, in addition to themselves, to receive notification by mail 14 days prior to termination.
• Amending various sections in Title 41, Idaho Code – Senate Bill 1040. This legislation is referred to as the Codifier Corrections bill and updates references to other code sections, e.g. corporate code, open meetings law, etc. Changes impacting Title 41 are at pages 30-38 of S1040.
• Amending Idaho Code § 41-1088 – Senate Bill 1049. This legislation amends the Idaho portable electronic insurance statute, which was enacted in 2012. All states now have identical or similar statutes in place. This legislation provides that notice of consent by the consumer shall be made, either by mail or electronic means, within 30 days of the transaction rather than simultaneously. Accordingly, the result of enacting this legislation allows easier access to electronic communication between a consumer and a portable electronics insurer.
• Amending Idaho Code § 41-3812(1)(b) – Senate Bill 1075. This legislation clarifies the term “realized capital gains” as used in the calculation when determining whether a dividend or distribution is extraordinary or non-extraordinary.
• Amending Idaho Code § 41-1010 and adding §§ 41-1090 to 41-1097 Senate Bill 1079. This legislation authorizes the Department of Insurance to issue limited travel insurance producer licenses to qualified applicants who will provide travel insurance through travel retailers. The legislation requires the licensed limited lines travel insurance producer and the travel retailer to meet administrative and disclosure requirements, such as including the producer’s identification information and making certain disclosures to the consumer in the marketing materials and fulfillment packages, and requiring the producer to establish and maintain a transaction record.
• Amending Title 41, Chapter 60 Idaho Code – Senate Bill 1081. This legislation extends the sunset date for the Immunization Assessment Board for two years to July 1, 2019.
• Amending Idaho Code § 41-4010 – Senate Bill 1117. The purpose of this legislation is to make it easier to create self-funded health insurance plans. This legislation adds to the current law giving authority to the director of insurance to extend by up to 12 months the time period a self-funded plan has to meet the minimum surplus requirements. All other requirements must be met.
• Amending primarily provisions in Title 41, Chapter 55 Idaho Code Senate Bill 1150. This legislation amends existing law to allow for individuals with high risk medical conditions and their dependents who are enrolled in individual health benefit plans to be reinsured through the Idaho Individual High Risk Reinsurance Pool. Current pool enrollment consists only of individuals and dependents who were unable to obtain health insurance due to a health condition and who had enrolled in one of five standardized plans. These standardized plans are no longer feasible, so the bill proposes a different method to continue to utilize the pool as a reinsurance mechanism (while grandfathering coverage for current pool enrollees) that will help stabilize the individual health insurance market in Idaho, encouraging insurers to continue to offer individual health benefit plans to Idaho consumers.

2016 Insurance Legislation Summary

(All legislation takes effect July 1, 2016 unless otherwise noted.)

Department of Insurance Legislation:

• Regarding Producer Licensing amending Idaho Code § 41-1016, § 41-1026, and § 41-1108 – Senate Bill 1221. To (1) provide for summary suspension or revocation of a nonresident Idaho license when the licensee’s home state license has been terminated, (2) to provide that a licensee whose license has been revoked shall not be permitted to obtain a new license until after the expiration of a period of time no less than between one and five years as may be specified in the revocation order, and (3) to provide that a license shall not be issued within a minimum period of one year to a person whose application for a license was previously denied.
  Presenter: Director Cameron

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Principle Based Reserves (PBR) – amending Idaho Code § 41-612, § 41-1927, and § 74-107 – House Bill 432. To define terms and to revise methodology how life insurance policies are valued which impacts the amounts of reserves life insurance companies maintain and to provide that certain information submitted to insurance companies shall be exempt for disclosure.
  Presenter: Julie Hart, American Council of Life Insurers
• Insurance Company Home Office Requirement – amending Idaho Code § 41-342, and § 41-2839 – House Bill 440. To provide an exception to the requirement that every domestic insurer must have and maintain its principal place of business and home office in this state for certain domestic stock insurers that redomesticate to Idaho.
  Presenter: John Mackey, United Heritage Insurance
• Worker’s Compensation Insurer Security Deposits – amending Idaho Code § 72-301 – House Bill 501. To allow certain types of bonds to be used as security deposits by worker’s compensation insurers for the Idaho Industrial Commission.
  Presenter: Woody Richards, Idaho Loggers Exchange
• Worker’s Compensation Firefighter Presumptive Illness – amending Idaho Code § 72-102 and § 72-438 – House Bill 554. To provide a presumption that certain diseases incurred by firefighters, such as specified cancers, would be presumed to be occupationally related unless medical evidence showed otherwise. Legislation sunsets after 5 years.
  Presenter: Representative Malek
• Employer Driver Reimbursement Program – amending § 49-2802 – Senate Bill 1262. To clarify that a “driver reimbursement program” whereby an employer, or a third party contracted by the employer, that provides mileage or incidental repairs and maintenance to employees who use personal vehicles for business purposes shall not be considered to be a motor vehicle service contract or a contract of insurance.
  Presenter: Roy Eigurern, Eiguren Ellis
• High Risk Pool Funding – amending § 41-406 – Senate Bill 1265. To appropriate one-quarter of the insurance premium tax exceeding forty-five million dollars to the Idaho Individual High Risk Reinsurance Pool and thereby reinstate the unintentional repeal of this provision – to be effective July 1, 2017.
  Presenter: Hyatt Erstad, Board Chairman, Idaho High Risk Reinsurance Pool
• Online Verification of Auto Liability Coverage – amending Idaho Code § 49-1234 and adding new § 41-1338 – Senate Bill 1283. To revise provisions regarding the online insurance verification system, to provide that the Idaho Transportation Department shall promulgate rules to provide insurers an alternative method for verifying motor vehicle insurance policy data, to revise provisions regarding the methods of verification, and to provide that failure to comply with specified law regarding uninsured vehicle tracking shall constitute a wrongful practice and subject an insurer to certain penalties under the insurance code.
  Presenter: Robert Compan, Farmers Insurance Group

Legislation enacted in 2015 taking effect in 2016:

• Unclaimed Life Insurance – amending Title 41, Idaho Code – Senate Bill 1023. This legislation adds to existing law, Chapter 30, to be known as the Idaho Unclaimed Life Insurance Benefits Act. This Act establishes requirements related to certain unclaimed life insurance benefits for life insurance companies to abide by. This Act takes effect July 1, 2016.
  Presenter: John Mackey, United Heritage Insurance

2015 Insurance Legislation Summary

(All legislation takes effect July 1, 2015 unless otherwise noted.)

Department of Insurance Legislation:

The Department of Insurance brought forth no legislation during the 2015 Legislative Session.

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Amending Idaho Code § 49-102, § 49-301, § 49-304, § 49-666, and adding new § 49-2448 – House Bill 17, as amended in the Senate. This legislation concerns autocycles, their definition, exemptions, and provisions of existing law now applicable to them.
• Amending Idaho Code § 41-6103 – House Bill 46 This legislation amends existing law by adding the definition for “stand-alone dental plan.”
• Amending Idaho Code § 41-4305 – House Bill 182 This legislation amends existing law to exclude consumer operated and oriented health plans (CO-OPs) established under the Affordable Care Act (ACA) from coverage by the Idaho Life and Health Guaranty Association. This legislation also adds language found in the NAIC Model Life and Health Insurance Guaranty Association Act that permits the guaranty association to exclude from membership entities that are similar to entities excluded by the law.
• Amending Idaho Code § 41-2704, § 41-2705 and adding new § 41-2714 House Bill 277 This legislation amends existing law to establish additional provisions concerning the business of title insurance including that operating under the control and supervision of the director of the Department of Insurance, by addressing closing or settlement protection. In addition, a new section is added concerning closing or settlement protection, limitations, rates, bans, and exceptions.
• Amending Idaho Code § 11-605(9)(10) – Senate Bill 1014 This legislation amends existing law to revise and clarify which proceeds of a certain life insurance contract are entitled to an exemption from attachment or levy.
• Amending Title 41, Idaho Code – Senate Bill 1023 This legislation adds to existing law, Chapter 30, to be known as the Idaho Unclaimed Life Insurance Benefits Act. This Act establishes requirements related to certain unclaimed life insurance benefits for life insurance companies to abide by. This Act takes effect July 1, 2016.
• Amending Title 39, Idaho Code – Senate Bill 1062 This legislation adds to existing law, Chapter 92, to be known as the Idaho Direct Primary Care Act. This Act directs public policy that Direct Primary Care Agreements do not constitute insurance but function as written contracts, and provides definitions, provisions, exemption, disclaimer and restrictions for such Agreements.
• Amending Idaho Code § 41-2653(1) – Senate Bill 1078 This legislation repeals Idaho Code § 41-2653(1) as out-of-date. The Statement of Purpose provides that the mortgage guaranty insurers’ coverage limitation of 25% never achieved its intended purpose to spread risk and draw new capital to the industry.
• Amending Idaho Code § 41-4002 and § 41-4010 – Senate Bill 1081 This legislation defines the term “public postsecondary educational institution,” revises a definition and sets forth reserve and surplus requirements of public postsecondary educational institutions with a public postsecondary educational institution plan.
• Amending Idaho Code § 72-523 – Senate Bill 1168 This legislation amends existing law concerning premium tax owed on worker’s compensation insurance to permanently reduce the tax rate from 2.5% to 2.0%, effective January 1, 2016.
• Amending Idaho Code § 41-60 – House Bill 107 Extends the sunset date of the Idaho Immunization Assessment Board and program set forth in Idaho Code Title 41, Chapter 60, for two years, that is until July 1, 2017.

2014 Insurance Legislation Summary

(All legislation takes effect July 1, 2014 unless otherwise noted)

Department of Insurance Legislation:

• Amending Title 41, Chapter 54, Idaho Code – House Bill 358 This legislation amends Title 41, Chapter 54, Idaho Code, dealing with Risk Based Capital (RBC) to align Idaho law with NAIC Model RBC Laws. Specifically, it revises definitions to include fraternal benefit societies and hospital and professional service corporations licensed by the Director of the Department of Insurance as entities subject to the RBC report filing requirement. It broadens the scope of the existing early warning trigger for a life insurance company and newly added health organization to file an RBC plan with the Director when there is a negative trend. The legislation also clarifies the confidential nature and privacy protection of RBC reports and related information filed with the Director by insurance companies and other entities. (Effective January 1, 2015.)

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• Amending Idaho Code § 41-6105 – House Bill 475. This bill requires that the Idaho Health Insurance Exchange (Your Health Idaho) allow anonymous shopping and not require identifying information until the customer is ready to submit an application for purchase. It also provides that the exchange application process contain a warning regarding potential repayment of premium reductions to the Internal Revenue Service if income information was underestimated.
• Amending Idaho Code § 19-854 – House Bill 512. This legislation provides that participation in the Idaho Health Insurance Exchange (Your Health Idaho) does not result in a presumption of indigency in regard to the Public Defender System.

2013 Insurance Legislation Summary

(All legislation takes effect July 1, 2013 unless otherwise noted)

Department of Insurance Legislation:

• House Bill 046 (Title 39, Chapter 19) – Repeal of antiquated fire protection-related laws.
• House Bill 197 (Title 41, Chapter 38) – Insurance Holding Company Systems. Provides for more detailed monitoring for system risk issues that might exist in non-insurance affiliates of an insurance company and could ultimately jeopardize the solvency of the insurer. This law will also be required for accreditation of the Idaho Department of Insurance by the NAIC./li>

Enacted Insurance-Related Legislation:

(for other bills that were printed but not enacted, please refer to legislature.idaho.gov)

• House Bill 011 (Section 41-2507) – Casualty Insurance. Allows automobile insurance companies operating in Idaho to non-renew policies of automobile insurance when an automobile insured under the policy is registered in a state other than Idaho.
• House Bill 178 (Title 41, Chapter 60) – Extension of sunset clause for another 2 years for Immunization Program – Immunization Board.
• House Bill 196 (Title 41, Chapters 36 and 43) – Amends existing law to revise provisions relating to the timing of permitted Idaho premium tax offsets by member insurers and to provide for an offset against premium tax liability to the Industrial Administration Fund for an insurer that is exempt from the premium tax.
• House Bill 199 (Title 41, Chapter 40) – Self-Funded Health Plans, Postsecondary Schools, and Updates. Amends existing law to provide that certain qualified public or private postsecondary educational institutions may, as a plan sponsor, establish a self-funded student health benefit plan and trust for student and dependent beneficiaries; and revises provisions related to the registration of self-funded plans.
• House Bill 217 (Section 49-1212) – Specifies that if a vehicle loaned for temporary use without charge is operated in a negligent manner, and such operation results in death or damages, the primary liability coverage for such event shall be the insurance coverage of the operator. The owner’s coverage shall be secondary.
• House Bill 232 (Section 41-1851)– Allows electronic delivery of insurance-related documents to an insured when the insured has affirmatively consented to such delivery.
• House Bill 248 (Title 41, Chapter 61) (Effective March 28, 2013) – State-based Insurance Exchange. Establishes a state-created, market-driven, health insurance exchange that will facilitate the selection and purchase of individual and small employer health benefit plans and is intended to enhance Idaho residents’ choice regarding options and access to affordable health insurance.
• Senate Bill 1016 (Section 41-1039) – Producer Licensing. Removes language providing that a bail agent’s license filed with the clerk of the District Court is deemed proof that such bail agent is licensed.
• Senate Bill 1100 (Section 41-121) – Health Care Sharing Ministries Freedom to Share. Adds to existing law to provide that a health care sharing ministry shall not be considered to be engaging in the business of insurance for the purposes of the State Insurance Code.
• Senate Bill 1109 (Section 41-1836) – Annuity Contracts. Modifies the statute applicable to a person’s deferred annuity contract exemption from creditors of the cash surrender value.
• Senate Bill 1165 (Section 41-1839)– Relates to insurers’ liability for attorney fees. Provides first-party insurers up to 60 days to make claim payment decisions on Uninsured Motorist and Underinsured Motorist claims.

Note: These brief summaries are not intended to fully explain, interpret or analyze the referenced legislation. These summaries are intended solely as a reference to legislation changes affecting the business of insurance that may be of interest to the public. Persons with an interest in any of the items noted above should review the complete bill.